U.S. Rep. Tom Reed (R-NY) on May 19 introduced bipartisan, bicameral legislation to establish a multibillion-dollar emergency relief fund that would support states and their local jurisdictions in recovering from the economic toll of the COVID-19 pandemic.
“I care about protecting American communities across the country by ensuring they have the resources to continue providing essential public health services and safely facilitating the reopening of the nation’s economy,” Rep. Reed said. “Speaking with local leaders every day, and as a former small-town mayor myself, I knew it was only fair that this bill protect localities and specifically safeguard the critical federal support they will receive.”
Rep. Reed introduced the State and Municipal Assistance for Recovery and Transition (SMART) Act, H.R. 6954, with bill sponsor U.S. Rep. Mikie Sherrill (D-NJ), which would establish a $500 billion coronavirus local community stabilization fund to be known as the SMART Fund. The fund will help state, local and tribal governments avoid layoffs, tax hikes, and cuts to essential services. The same-named S. 3752 was introduced by U.S. Sens. Bill Cassidy (R-LA) and Bob Menendez (D-NJ) in their chamber.
“I thank my colleagues for their willingness to work over the last two months in a bipartisan, bicameral fashion on a solution that properly addresses the magnitude of the economic challenges facing state, county and municipal governments in this country,” said Rep. Reed.
If enacted, the measure would bolster the $150 billion Congress provided to assist state and local governments in the Coronavirus Aid, Relief, and Economic Security (CARES) Act by adding an additional $500 billion in funding. The bill also would eliminate the current 500,000 resident population threshold so that every state, county, municipality, U.S. territory, and the District of Columbia would qualify for direct federal assistance, regardless of its size, according to a bill summary provided by the lawmakers.
After a $16 billion set-aside for Native American tribal governments, the remaining funding would be allocated to states through three equally divided tranches: one-third based on population size; one-third based on infection rates; and one-third based on revenue losses, according to the bill summary.
All states, Puerto Rico and the District of Columbia would receive a minimum of $2 billion combined from the first two tranches in addition to their allocation from the third tranche, the summary says.
“The federal government has a responsibility to help,” said Rep. Sherrill. “This legislation is an important, bipartisan step toward getting towns, counties and states the resources they need to keep their residents safe.”
H.R. 6954 has been referred for consideration to the U.S. House Oversight and Reform Committee, while S. 3752 is being reviewed by the U.S. Senate Banking, Housing, and Urban Affairs Committee.